Stock, Option and Futures Trading
Since the 11,600 low we noted as support the market has went sideways as it builds and tries to complete the wedge pattern. In wedges we can go sideways for longer than its seems like we should. We are building smaller wedges inside the bigger wedge.
This is not helping our short term calls but we are either in it or not at this point. From levels like this is where gaps occur and once/if we gap up we may not look back.
We have calls going out to DEC as well so if we get caught it the chop and time expires on BIDU we will look to make it back as the market breaks out of the wedge.
We are getting close today and we are up at the top of the wedge the question here is does it retrace once again on a very small basis. Since it feels like light volume so far today maybe the breakout does not occur today or even tomorrow.
OR maybe the breakout to the upside fails the market stills needs to complete down to 11,200. For now all major and minor supports are holding so I would not bet 11,200 at this point until we breakdown out of the wedge.
So far today has been kind of brutal to watch. Most of the time in 60 min corrections the 1st part of the day is not good and the 2nd part of the day after lunch is where it is easier to day trade because we get gaps inside the 60 min correction which makes the 1st two hours harder to trade.
12,050 is short term support and 11,900 is bigger support for the day.